Film Room: Handling House stress

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Stress levels ratchet up as the membership continues to wait for an approved House settlement. In this week’s Film Room, we offer practical steps to take now to best move through the uncertainty.

Continued House Anticipation and Increased Stress

The calendar has flipped to June, so we’re less than one month away from the July 1 implementation of the proposed House settlement. However, it’s lost on no one that we don’t yet have an approved settlement.

It was already a challenging task to design the new procedures and systems needed to roll out institutional payments to student-athletes and a revised approach to third-party NIL. Doing so against the backdrop of a not-yet-settled House case is causing increased anxiety.

Student-athletes are arriving on campus. How does an institution communicate with student-athletes (and coaches) in a manner that both limits risk and is accurate?

Driving Forward Now, Through Current Uncertainty

Like a good team when pressed in unexpected ways, an institution and its athletic department can fall back on its preparation and make necessary adjustments. How?

  • First, by revisiting the high-level strategic plan and budget expectations. Roster limit changes and specific student-athlete movements may have impacted these big-picture questions. Institutions—which have a better sense of expected 2025-26 actuals now than they did in March—can sharpen plans and budgets with increased specificity.
  • Second, by giving the appropriate attention to payment systems and mechanics. How will payments be made (properly), and what are the processes in place for monitoring performance and procedures for setoffs against those payments? Smooth out team-specific and other nuances now to allow adjustments to curveballs in the actual rollout when it goes live.
  • Third, by communicating accurately with student-athletes and coaches about the current state and the institution’s approach. Depending on what (promises?) an institution communicated to student-athletes and recruits months ago, an institution may have some exposure here. Institutions can best position themselves by carefully considering past communications and making any needed adjustments.

Relatedly, program General Managers (GMs) often find themselves in conversations and dealings fraught with organizational and legal risk. Those risks are heightened now, as student-athletes arrive on campus this summer with questions.

Be on the lookout for a more detailed discussion of the risks associated with sport program GMs and how institutions can protect against those risks with internal controls.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations. Attorney Advertising.

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